Beginning your search for the perfect space for your business? At first, the commercial real estate market can seem completely overwhelming. With all the amenities, features, and numbers, it’s easy to get distracted. At Red Handed, it’s our mission to eliminate the broker from the commercial real estate equation and simplify the leasing process for both parties. We’re boiling down the key steps to leasing a commercial space and choosing the right building for your business’s needs.
The 7 Steps to Consider When Leasing a Commercial Space
1. Set your budget
The first step to finding the right commercial space for your business is to set a clear budget. Keep in mind that certain terms can be negotiated to fit your budget while you are in talks with landlords. However, a well thought out and data-backed budget will help rule out many of the available spaces and bring you closer to your goal of selecting the perfect space. If need be, consult an accountant or bookkeeper to go over your numbers and come up with a number that works for you.
2. Consider your business’s needs
Opening a large-scale restaurant? Just need space for a curated boutique? Searching for an adequate room and loading area for an ecommerce warehouse? Not all businesses require the same amount of space or facilities. Work out a rough square footage that would best suit your business’s needs and use that number to guide your search. Once you have combed through spaces that fit your budget and your space preferences, you can rule options out based on what facilities the spaces offer.
3. Pay attention to eco-friendly fixtures
Are you planning on running an eco-conscious business? If so, it would be wise to factor in the sustainability of a space when vetting your options. Look for features like high-speed internet, solar panels, the absence of diesel generators, and any other aspects that matter to the integrity of you and your business. With the commercial real estate market on the upturn and quickly recovering from the impact of COVID-19, your priorities should remain priorities. On the other hand, if sustainability isn’t a driving factor in your decision, you can overlook these specifications when browsing spaces.
4. Evaluate aesthetics on the commercial real estate space
First impressions matter, especially when they could mean the difference between a customer’s business and a decision not to step inside. Take a careful look at the photos provided by a landlord and consider whether they match your desired aesthetic or not. If the photos don’t stack up, it may be a sign that the space is not a great fit. Your first impression will likely be shared by potential customers, so be wary of fixer uppers — unless you’re committed to putting the work in to truly fix it up. And one more tip: don’t be afraid to ask for more photos if you aren’t sold!
5. Do your research on the neighborhood
When looking at spaces, ask yourself questions like, how much foot traffic does the space get? Is there a high rate of crime in this area? Are the streets well-lit? Is the area considered trendier or more of a mainstay? All of these aspects can inform your decision about whether a neighborhood is right for your business or not. Ensure that your business’s target consumer base matches with the characteristics of a space’s neighborhood.
6. Differentiate your “needs” from your “wants”
Just like searching for the perfect home, potential tenants often have a list of preferred amenities and qualities they are looking for in a space. Determining whether or not these are needs or wants will help you consider spaces and set boundaries. A list of needs and wants will also assist you in avoiding overwhelm when browsing all of the amenities and features available. It allows you to easily focus on what’s most important and factor in the bonuses when narrowing down your options.
7. Read over the lease terms for the commercial real estate space
Are you looking for a short-term lease? Do you know what’s included in your lease terms? Many businesses currently prefer shorter, more flexible lease terms as opposed to longer ones. Others are more open to longer leases. Pay close attention to the lease terms and whether they are up for negotiation. Leases also vary from net to gross rent rates, depending on which costs the tenant is expected to pay. Some landlords may be willing to adjust the lease, so it’s never a bad idea to ask them personally.
Takeaway
Your business is unique, so you should carefully consider these factors when choosing the perfect commercial real estate space. Red Handed allows you to browse available spaces without the middleman, so you can personally assess which ones are just right for your business. Take these tips with you as you make the move towards opening your brick and mortar location.
